83R7637 BEF-D By: Bonnen of Galveston H.B. No. 2700 A BILL TO BE ENTITLED AN ACT relating to the requirement that certain health care providers give patients a good faith estimate of the expected payment for health care services and goods before the services or goods are provided; providing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle A, Title 3, Occupations Code, is amended by adding Chapter 117 to read as follows: CHAPTER 117. GOOD FAITH ESTIMATE OF HEALTH CARE PAYMENTS SUBCHAPTER A. GENERAL PROVISIONS Sec. 117.001. DEFINITIONS. In this chapter: (1) "Department" means the Department of State Health Services. (2) "Executive commissioner" means the executive commissioner of the Health and Human Services Commission. (3) "Health care provider" means: (A) a health care professional who performs a health care service or provides a health care good in this state under a license, certificate, registration, or other authority issued by this state to diagnose, prevent, alleviate, or cure a human illness or injury, including a physician, dentist, pharmacy, or pharmacist; (B) a health care facility that provides a health care service or good in this state under a license, certificate, registration, or other authority issued by this state to diagnose, prevent, alleviate, or cure a human illness or injury, including an institutional health care provider or other hospital; or (C) a person that provides to patients in this state ancillary health care-related services and goods under a license, certificate, or registration issued by this state, or that is otherwise authorized to provide to patients in this state ancillary health care-related services and goods ordered or authorized by a licensed health care professional, to diagnose, prevent, alleviate, or cure a human illness or injury, including laboratory services, radiological services, and durable medical equipment. SUBCHAPTER B. ADMINISTRATION OF CHAPTER Sec. 117.051. ADMINISTRATION BY LICENSING ENTITIES. (a) The governing body of the entity that issues a license, certificate, registration, or other authorization to practice to a health care provider shall administer and enforce this chapter as it applies to the provider. (b) A governing body described by Subsection (a) may adopt rules governing the application of this chapter to health care providers regulated by the entity. Sec. 117.052. ADMINISTRATION BY DEPARTMENT. (a) The department shall administer and enforce this chapter as it applies to any health care provider not issued a license, certificate, registration, or other authorization to practice described by Section 117.051. (b) The executive commissioner shall adopt rules governing the application of this chapter to a health care provider described by Subsection (a). SUBCHAPTER C. GOOD FAITH ESTIMATE Sec. 117.101. GOOD FAITH ESTIMATE REQUIRED. (a) Except as provided by Subsection (b), before a health care provider provides to a person a health care service or a health care good, including a drug or medical device, the health care provider must provide the person a good faith estimate of the actual expected payments for the service or good, as provided by this subchapter. The health care provider shall ask the person to disclose the person's anticipated method of payment for purposes of complying with this subchapter. (b) A health care provider shall: (1) in an emergency or urgent medical situation, provide to a person any health care service or health care good necessary to stabilize the person's medical condition if delay required to provide a good faith estimate of the actual payment for the service or good under Subsection (a) could result in an adverse medical consequence to the person; or (2) provide to a person a health care service or health care good ordered by the person's physician or other person primarily responsible for the person's care if the person is unable to make medical decisions and does not have a legal representative to make medical decisions on the person's behalf. Sec. 117.102. GOOD FAITH ESTIMATE FOR INSURED PERSONS. If a person has an individual, group, or other private or commercial health insurance plan or policy, including coverage through a preferred provider organization or health maintenance organization, a health care provider shall provide the person a good faith estimate of: (1) the amount the insurance plan or policy will actually pay the health care provider for the health care service or health care good based on the negotiated rate between the health care provider and the insurance plan or policy; and (2) the amount of any copayment, coinsurance, or other amount the person will actually pay the health care provider for the health care service or health care good based on the terms of the person's insurance plan or policy and the negotiated rate between the health care provider and the person's insurance plan or policy. Sec. 117.103. GOOD FAITH ESTIMATE FOR RECIPIENTS OF GOVERNMENT-SPONSORED PROGRAM. If a person receives benefits under a government-sponsored health benefits program, including the Medicaid program, the Medicare program, the Children's Health Insurance Program (CHIP), and the TRICARE military health system, a health care provider shall provide the person a good faith estimate of: (1) the amount the government-sponsored health benefits program will actually pay the health care provider for the health care service or health care good; and (2) any amount the person will actually pay the health care provider for the health care service or health care good under the terms of the government-sponsored health benefits program. Sec. 117.104. GOOD FAITH ESTIMATE FOR RECIPIENTS OF WORKERS' COMPENSATION BENEFITS. If a person receives benefits under a workers' compensation claim, a health care provider shall provide the person a good faith estimate of the amount the workers' compensation insurance carrier will actually pay the health care provider for the health care service or health care good. Sec. 117.105. STATEMENT FOR PERSONS PAYING CASH, PERSONS RECEIVING CHARITY CARE, AND INDIGENT PERSONS. If a person will pay cash or will receive charity care for a health care service or health care good or if a person is indigent, a health care provider shall provide the person with a statement of the average amount the health care provider was actually paid for the health care service or health care good by the five insurance carriers or government-sponsored programs described by Sections 117.102, 117.103, and 117.104 that paid the health care provider for the greatest number of that health care service or health care good in the preceding calendar year, or in the current calendar year if the health care provider did not practice in the preceding calendar year. SUBCHAPTER D. AGREEMENT TO PROVIDE GOOD FAITH ESTIMATE ON BEHALF OF ANOTHER HEALTH CARE PROVIDER Sec. 117.151. CONTRACT TO ALLOW ANOTHER HEALTH CARE PROVIDER TO PROVIDE GOOD FAITH ESTIMATE. (a) A health care provider may by contract agree to allow another health care provider to provide a good faith estimate under Subchapter C for that health care provider's health care services and health care goods. (b) A health care provider who enters into a contract described by Subsection (a) is responsible for the content of the good faith estimate provided by the other health care provider on that provider's behalf. Sec. 117.152. RULES GOVERNING CONTRACTING. (a) The executive commissioner may adopt rules governing contracts under Section 117.151. (b) The department shall administer rules described by Subsection (a). SUBCHAPTER E. PENALTIES AND ENFORCEMENT Sec. 117.201. VIOLATION BY LICENSED HEALTH CARE PROVIDERS. A health care provider that violates this chapter is subject to an administrative penalty, a civil penalty, or other disciplinary action, as applicable, in the same manner as if the health care provider violated the law under which the health care provider is licensed, certified, registered, or authorized to practice. Sec. 117.202. VIOLATION BY OTHER HEALTH CARE PROVIDERS. (a) The executive commissioner or department may impose an administrative penalty against a health care provider that is not required to hold a license, certificate, registration, or other authorization to practice and that violates this chapter. (b) An administrative penalty imposed under this section shall be imposed in the same manner as other administrative penalties imposed by the executive commissioner. (c) The amount of the penalty may not exceed $1,000 for each violation. (d) The executive commissioner may adopt rules to implement this section. SECTION 2. The changes in law made by this Act apply only to a health care service or health care good ordered or provided on or after the effective date of this Act. A health care service or health care good ordered or provided before the effective date of this Act is governed by the law in effect on the date the service or good was ordered or provided, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2013.